The approaching increase in automatic enrolment (AE) contributions this April is "highly unlikely" to lead to large numbers of people giving up saving into a workplace pension, Royal London has said.
The pension provider's new policy paper What will be the impact of the April 2019 step-up in AE contribution rates? concluded that, despite the upcoming hike in employee contribution rates, the impact on pension scheme membership should be minimal. Royal London said the increased contributions would be partly or fully offset for most people by pay rises and a more generous income tax system, which will see an above-inflation increase in the personal allowance for income tax and an above-inflation increase in the national living wage. From 6 April 2019, the employer minimum contributio...
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